Ryder Q2 Earnings & Revenues Beat Estimates, 2025 EPS View Tweaked

Core Insights - Ryder System, Inc. reported strong second-quarter 2025 results with earnings and revenues exceeding expectations and showing year-over-year improvement [1][8] - Earnings per share (EPS) reached $3.32, surpassing the Zacks Consensus Estimate of $3.11 and reflecting a 10.7% year-over-year increase [1][8] - Total revenues amounted to $3.18 billion, slightly exceeding the Zacks Consensus Estimate of $3.17 billion and showing a 0.2% year-over-year growth [2][8] Financial Performance - Operating revenue (adjusted) was $2.6 billion, up 2% year over year, driven by growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [2] - The company achieved a return on equity (ROE) of 17%, demonstrating effective execution and resilience in its business model [3][8] Segment Performance - Fleet Management Solutions reported total revenues of $1.46 billion, a 1% decline year over year, while operating revenues increased by 1% to $1.28 billion due to higher ChoiceLease revenue [4] - Supply Chain Solutions saw total revenues of $1.36 billion, a 2% increase year over year, with operating revenues rising 3% to $1.01 billion due to new business and higher customer volumes [5] - Dedicated Transportation Solutions experienced a decline, with total revenues of $606 million and operating revenues of $470 million, down 5% and 3% year over year, respectively [5] Liquidity and Outlook - Ryder ended the second quarter with cash and cash equivalents of $180 million, up from $151 million in the previous quarter, while total debt decreased slightly to $7.72 billion [6] - For the third quarter of 2025, adjusted EPS is expected to be in the range of $3.45-$3.65, with the full-year adjusted EPS guidance updated to $12.85-$13.30 [7][9] - The company raised its free cash flow outlook for 2025 to up to $1 billion, with net cash from operating activities projected at $2.8 billion [8][9]